Stampede to snap up British pounds

Shane Kennedy said there was a line out the door at the Travelex of people cashing in on the aftermath of Brexit. Photo / John Borren

Tauranga travellers have been cashing in on Brexit, with one foreign currency exchange reporting a line out the door of people trading New Zealand dollars for the British pound.

On Friday Britain voted to leave the European Union, the move triggering the value of the pound to plummet, creating a favourable exchange rate for those heading to the UK.

Owner-operator of House of Travel Tauranga Shane Kennedy said there was a queue at the door of Travelex yesterday morning.

There's been a constant flow of people into the office wanting to buy pounds and they sold out of them on Friday.

Don Menzies, owner of Travelcom in Mount Maunganui

"Some people maybe were buying to travel and they certainly have good timing for that. Others may be buying on a speculative basis, it's difficult to tell and we don't ask.

"There's certainly a lot of currency going out the door."

For New Zealanders, buying British pounds it was in the best exchange rate it had been for many years - the best Mr Kennedy could remember.

"I can't remember the pound being this weak against the NZ dollar for 20 years," he said.

He said Kiwis were savvy travellers, well aware of currency values at various destinations so without any doubt it would drive more enquiry into travelling to the UK and Europe.

He said the result of Brexit would have consequences for travellers from New Zealand, though they were all positive.

"It can change the way people travel. Maybe people will stay longer. Or before Brexit maybe someone was looking at staying in three-star accommodation, now perhaps it's more affordable to stay in luxurious accommodation."

However, the phone was not ringing off the hook with people clamouring to go to the UK.

"It will just make people who already have an interest or are already going there more optimistic about what they can do and what it will cost."

There were probably people who had already bought their UK currency who would be feeling a sense of frustration or missed opportunity.

Don Menzies, owner of Travelcom in Mount Maunganui, said the foreign currency exchange in their office had had "quite a run" of people buying the pound from the end of last week and yesterday.

"There's been a constant flow of people into the office wanting to buy pounds and they sold out of them on Friday.

"The season's just about over, people go for the summer and they're right in the middle of it right now."

Dave Cull owner of Helloworld Tauranga said travellers to the UK would "definitely be making some savings".

"We're not seeing an influx of people wanting to go to the UK, but for those people who have already booked and are going in the near future and haven't got their currency yet they will certainly make some savings."

He said Brexit shocked the market, though it had already recovered a bit from its low point on Friday.

Currency calamity:

* The NZ dollar surged as high as 52.88 British pence, the highest in almost three years, from 48.55p on Thursday. At edition time, one New Zealand dollar equalled 52.73p.